#United States #Sanford #Hoverfly Technologies #Leonardo DRS #Korea Robot Manufacturing

Hoverfly Technologies Secures $20 Million Series B Investment

Hoverfly Technologies, a prominent provider of tethered drone systems focused on defense and security, has recently announced the successful completion of its Series B funding round, which raised an impressive $20 million. This significant investment comes from established partner Leonardo DRS, a leader in defense technology, and newcomer Korea Robot Manufacturing (KRM). This capital injection marks the largest in the company’s history, reinforcing Hoverfly's position at the forefront of the tethered drone market, which plays a crucial role in U.S. and allied defense operations.

Key Highlights of the Investment

Leonardo DRS, which is publicly traded under the NASDAQ symbol DRS, contributed a hefty $15 million to this funding round, showcasing their confidence in Hoverfly's strategic direction and business model. As part of this collaboration, Hoverfly also entered into a manufacturing agreement with DRS aimed at increasing production volumes for its flagship products, the Hoverfly Sentry and the Hoverfly Spectre systems.

"Our ongoing support for Hoverfly Technologies exemplifies our steadfast belief in their innovative tethered drone solutions," said Aaron Hankins, Senior Vice President at Leonardo DRS. He added that this partnership is pivotal in enhancing U.S. defense capabilities while promoting domestic production initiatives.

In addition to DRS, KRM, a South Korean company known for its sophisticated engineering and manufacturing solutions for UAVs and sensors, invested $5 million. This partnership is designed to facilitate the establishment of a new U.S.-based facility dedicated to the production of critical components for drones, which will simultaneously enhance support for U.S. defense sectors and bolster supply chain resilience. KRM has strategically secured a stable supply of high-performance components through a collaboration with manufacturers outside of traditional high-risk regions, ensuring a consistent availability of necessary materials for Hoverfly.

KRM's CEO, Kwangsik Park, highlighted that their partnership with Hoverfly allows for the creation of a robust U.S. supply chain for essential UAV components, thereby addressing national security priorities.

Future Directions and Market Expansion

Both Leonardo DRS and KRM are now designated as official resellers and integrators of Hoverfly's Sentry and Spectre systems, which will broaden Hoverfly's production capacity and global market reach. "This funding round signifies a pivotal moment for Hoverfly Technologies," remarked CEO Steve Walters. He expressed confidence that with the backing of DRS and KRM, the company is now well-positioned to scale operations rapidly, introduce new products, and target emerging market segments.

The investment comes at a crucial time as the U.S. Department of Defense emphasizes the development of reliable, domestically produced unmanned systems. Hoverfly Technologies stands out as the only tethered drone listed on the DIU Blue List, positioning its offerings as a secure, domestically sourced alternative for national defense priorities.

The company aims to leverage KRM’s advanced engineering capabilities to deliver cost-effective, high-performance technology to U.S. clients. Furthermore, Hoverfly’s latest innovation, NEXUS (Network Extension of Unmanned Systems), addresses the increasing demand for unmanned technology ecosystems—a necessity underscored by lessons learned from the conflict in Ukraine. NEXUS enables Hoverfly drones to function both as targeting systems and for command-and-control, extending drone operation ranges significantly.

Forecasts indicate that the tethered drone sector is on the rise, projected to grow from approximately $140 million in 2023 to over $2.6 billion by 2032, at an annual growth rate of 38%. Hoverfly Technologies, with over 800 tethered drones sold to U.S. and allied defense clients, has clearly established itself as a key player in addressing vital needs for continuous Intelligence, Surveillance, and Reconnaissance (ISR), targeting capabilities, and tactical network expansions in military applications.

About Hoverfly Technologies

Founded in Sanford, Florida, Hoverfly Technologies specializes in creating tethered drone systems geared toward defense and security. The company is committed to providing robust aerial surveillance solutions and network extensibility while ensuring reliable, American-manufactured systems to serve mission-critical operations. It also offers comprehensive support services, including training and maintenance, for its extensive customer base around the globe.